Kruger VP Talks about a $700M retrofit at Corner Brook Pulp and Paper

Kruger Vice President Darren Pelley says it will start with the modernization of the Forestry, something Pelley says people will start to see early on as the first step is changing the way they harvest, providing saw mills with saw logs first. He says a lot of investment is needed in the mill through construction, new equipment and changes in process.  

Corner Brook Pulp and Paper is a long-standing employer and a key part of the forestry industry. On Monday, government announced a new agreement had been reached between NL Hydro and the mill’s parent company Kruger regarding the sale of electricity from Deer Lake Power to the grid. Government is currently reviewing the Corner Brook Pulp and Paper Diversification Project proposal. It’s a $700M retrofit and Kruger Vice President Darren Pelley says there are a lot of moving parts and this will allow government time to review the project. 

Pelley says this is a large project and they’re making good progress, one that touches forestry, the mill itself and has an energy component. He says discussions with government are primary and the key piece at this point and they hope to get moving in the next few months. 

It will start with the modernization of the Forestry, something Pelley says people will start to see early on as the first step is changing the way they harvest, providing saw mills with saw logs first. He says a lot of investment is needed in the mill through construction, new equipment and changes in process. 

Energy and Mines Minister Lloyd  Parrott says the temporary agreement will provide additional capacity for NL Hydro at a lower cost as compared to what was signed previously. 

Finance Minister Craig Pardy says the priority is to create opportunities that strengthen rural economies and ensure the people of this province are the first to benefit from projects that drive growth and sustainability.